Rachel Reeves, the shadow chancellor, said if Labour were in power now it would force banks to offer a range of support to borrowers, including letting them move on to interest-rate-only mortgages, and extending their repayment periods.
The Bank of England is expected to raise rates again today, possibly by as much as 0.5 percentage points - a move that would lead to millions of households losing major chunks of their income in the coming months.
Reeves said: "Across Britain, people are being hit hard by a Tory mortgage penalty. Unlike this government, Labour will not stand by as millions face a mortgage catastrophe made in Downing Street."
Labour's announcement does not amount to a promise to enact such changes if the party is elected at the next election. But it does amplify growing calls for the prime minister to take similar action, in advance of a crunch meeting between the chancellor, Jeremy Hunt, and major banks tomorrow as concern grows about the fallout from the "mortgage timebomb".
Figures released yesterday showed inflation stuck at 8.7%, with economists warning that rising wages could mean it takes longer to drop to pre-pandemic levels. Stubbornly high inflation has in turn caused banks to put mortgage interest rates above 6% for the first time since Liz Truss's botched mini-budget last year.
Esta historia es de la edición June 22, 2023 de The Guardian.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición June 22, 2023 de The Guardian.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Post Office boss asked about his pay and bonuses 'more than expected', says board member
The chair of the Post Office's remuneration committee has said she was surprised at how frequently the company's boss, Nick Read, asked about his pay and bonuses, given the pressure it was under due to the ongoing fallout from the Horizon IT scandal.
Murdoch property group raises offer for Rightmove to £6.2bn as deadline looms
Britain's booming wine-growing industry has been compared to \"California in the 70s\", with annual production more than doubling to 12m bottles a year, according to a report.
Viral load Social media putting rare species in danger
With its striking plumage, impressive size and rowdy displays, a capercaillie is many birders' dream. Only about 530 of the woodland grouse survive in the wild, most in Scotland's Cairngorms national park.
Toll of 20 dead in storm-hit south-eastern US could rise as flooding hampers rescues
Hurricane Helene has reportedly killed at least 20 people and left 4m consumers without power across the south-eastern United States after crashing ashore in north-western Florida late on Thursday as a potent category 4 hurricane, according to officials.
Closing borders Electoral pressures put EU's freedom of movement under threat
In 2015, when more than 1.3 million people headed to Europe, mostly fleeing a brutal war in Syria, the response of Germany's chancellor, Angela Merkel, was to say: \"Wir schaffen das\" (\"We can manage this\"), and open the country's borders.
Fight does not end here, say critics, as Wimbledon wins the go-ahead to expand
Wimbledon's controversial plans to build 39 new tennis courts have been given the green light after a deputy mayor of London ruled that the \"very significant benefits\" of the scheme outweighed any potential harm to the environment.
Sue Gray Advisers to the PM are often targets of sniping but is it sustainable?
For someone who was not even in Liverpool for the Labour party conference, Sue Gray was the subject of a remarkable amount of conversation.
Revealed Alli gave PM a further £16,000 gift of clothing
Keir Starmer was given a further £16,000 worth of clothes by the Labour peer Waheed Alli, which was declared as money for his private office, the Guardian can reveal.
Tributes paid to 'one of a kind' in seven decades on stage and screen
Maggie Smith, the prolific, awardwinning actor described by peers as being \"one of a kind\" and possessed of a \"sharp eye, sharp wit and formidable talent\", has died aged 89.
Diplomacy Netanyahu insists Israel is winning on 'seven fronts'
Israel's prime minister, Benjamin Netanyahu, shrugged off global appeals for a ceasefire in Lebanon and Gaza yesterday, using a defiant speech at the UN general assembly to denounce the world body as an \"antisemitic swamp\" and insist Israel is \"winning\" its multi-front wars.